Research

Blockchains as emerging economies

A fundamentals-based framework to assess the economic activity of a blockchain may help asset allocators in their investment decision-making.

By: Paul Lang Anais Rachel

Updated: 6/4/2025

Key Takeaways

Cryptocurrencies are digital assets that specifically reference the native currency of a blockchain and represent the primary unit of account and medium of exchange in that local economy.
Similar to traditional economies, digital economy currencies derive their value from explicit demand for the currency in accessing a broad network of goods and services, and resilience to loss from theft, network disruptions, or expansionary monetary policies.
Economic activity of a blockchain can be assessed through a GDP-like lens attributed to investment, consumption, government spending, and net exports.
Fidelity’s fundamentals-based framework for digital asset selection and portfolio construction may help asset allocators in their investment decision-making.
This article utilizes the Ethereum network and its local currency, ether, to illustrate Fidelity’s framework. Measuring economic activity on blockchains has widespread applications for our investment approach, and is core to our asset allocation views.

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Blockchains as emerging economies

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Blockchains as emerging economies

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